Derivative calls on DHFL, RIL, ICICI Bank: Vineet Sood

Here are a few derivative calls from SMC Global Securities in trade today:

NIFTY (7719)


After 6 days of continuous fall, finally Nifty found support at 7550 levels and bounced 2%.  This counter trend move is likely to continue till resistance of 7820-7850. Technical indicators are suggesting consolidation phase ahead and stock specific themes are likely to perform well in comparison with broader index.

 
DHFL: LONG

Last close: Rs 433

Target: Rs 452

Stop Loss: Rs 425

The stock has formed double bottom pattern on chart and at same time open interest has surged by 27%. Price profile indicator indicates long accumulation.  Short term technical indicators are suggesting bounce is likely to continue further. Hence buy it with protective stop loss of Rs 425.

 

RELIANCE INDUSTRIES: LONG


Last close: Rs 855

Target: Rs 890

Stop Loss: Rs 839

Reliance has strong support at Rs 830-835 levels on chart which stock retested many time in past.  Price indicators suggest high probability of trend reversal. A possible double bottom pattern gives low risk/reward ratio. Hence accumulate reliance with stop loss of Rs 839.

 

ICICI BANK: LONG

Last close: Rs 263

Target: Rs 279

Stop Loss: Rs 255

The ICICI Bank corrected more than 15 % in 10 trading session. The Rs 240-260 price zone is long term support zone and stock validated it today and bounced. Price pattern also suggests short term bottom is placed. Hence accumulate ICICI Bank with stop loss of Rs 255.

 

All discussed price levels are Future Price levels.

 
Disclaimer: These calls are generated on the basis of derivative data and technical analysis. I personally don’t have any position in discussed stocks but as brokerage house, our proprietary desk and clients may have exposure.

Vineet Sood is Assistant VP - Derivative Research, SMC Global Securities